With a residential leasehold property in Roundhay, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than 80 years remaining. Anyone in Roundhay with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below eighty years remaining, under the current legislation the landlord can calculate and demand a larger amount, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Roundhay with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin |
The lawyers that we work with handle Roundhay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Luke, came precariously close to the 80-year threshold with the lease on his purpose- built flat in Roundhay. In buying his flat twenty years ago, the lease term was of minimal significance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Luke was able to extend his lease just under the wire in August. Luke and the landlord eventually agreed on sum of £5,500 . If the lease had slid lower than eighty years, the premium would have gone up by a minimum £850.
Ms Rachael Lee acquired a first floor flat in Roundhay in January 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in Roundhay with an extended lease were worth £300,000. The average amount of ground rent was £50 billed annually. The lease concluded on 11 November 2102. Taking into account 76 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
Mr B Cooper purchased a basement apartment in Roundhay in June 2007. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative properties in Roundhay with a long lease were worth £257,800. The mid-range ground rent payable was £65 billed every twelve months. The lease lapsed in 2091. Given that there were 65 years outstanding we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus expenses.